Company decides to invest in the opportunity

Reference no: EM131502916

A company considered an investment opportunity that takes an initial investment of $75,000 and yields after-tax cash flow of $32,000 for the first three years and $12,000 for the following two years.

Which two statements could be said of this project if the company decides to invest in the opportunity?

a. IRR is higher than 13%

b. hurdle rate can be 24%

c. IRR is less than 12%

d. Hurdle rate can be 20%

Reference no: EM131502916

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